Spirit Airlines is negotiating a debt-restructuring deal with creditors, a revelation that has sent the company’s stock price crashing.
Spirit has been in “active and constructive discussions” with some of its note-holders—those who have lent money to the airline—to restructure the company’s debt obligations, according to a Nov. 12 company statement.
The discussions were regarding debts due in 2025 and 2026.
The airline is also “exploring strategic alternatives and other ways to improve liquidity,” it said. If an agreement is reached, a debt restructuring would be implemented, which can also lead to canceling the company’s existing equity. If an agreement is not reached, Spirit “will consider all alternatives.”…